Adjusting complex Commercial Real Estate Scenarios to reflect senior management deal comments.
Released in Dashflow Version 2.0.
Blackstone’s Asset Management team shared with us the impression that even the best cash flow Excel templates or modern appraisal software seem destined to aggravate real estate professionals when they start exploring multiple scenarios.
It can happen like this: detailed underwritten business plans can contain multiple and differing unit-by-unit assumptions. I.e. a single scenario becomes more complex as due diligence and bidding advances. So say you have a modest 12-unit deal containing ~5 refurb/releasing assumptions. Even this can equate, conservatively, to 60 (12 x 5) manual spreadsheet changes just to answer one comment made during an investment meeting.
This has now been addressed in Dashflow v2.0: you can flex overall scenario and address ‘big-picture’ comments instantly. E.g. raise the deal CAPEX psf across all Lease Expiry refurbs, easily extend overall leasing by 6 mths, dial up or down ERVs psf rental tones, etc. Flexing assumptions in real time has gone from difficult to easy. The avoidance of complex manual labour arising from human what-if scenario discussions is a game-changer.